Key Features of the GENIUS Act:
Definition of Payment Stablecoins:
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The Act formally defines payment stablecoins as digital assets pegged to a fixed monetary value and primarily used for payments and settlements.
Licensing System:
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It establishes a licensing system for institutions issuing stablecoins, requiring them to meet certain financial condition and resource requirements.
Regulatory Oversight:
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The bill introduces a dual oversight system, allowing stablecoin issuers to register under federal or state regulations based on their market capitalization.
Reserve Backing and Audits:
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Issuers are required to maintain 1:1 reserve backing for their stablecoins, along with regular audits to ensure financial stability and consumer protection.
Anti-Money Laundering (AML) Protections:
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The Act includes provisions to address AML concerns and ensure the integrity of the stablecoin ecosystem.
Consumer Protection:
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The bill imposes customer protection standards on persons that pro
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